Hi everyone - we have an investment property in Dunedin - 2 flats under one roof on a 1000m2 section. It's possible for us to carve off a 500m2 section at the back. We bought it in 2021 at pretty much the height of the market for $950K including a property finder's fee. We now want to sell in order to free up capital to upgrade our family home. We're trying to decide which scenario will net us the most profit (and the least tax):
1: divide the units into separate unit titles and sell them separately, as well as subdividing off the back section and selling that separately. (We'd have to spend around $50K for fire wall report, building consent and fire wall upgrade between the units. Estimate is a cost of an additional $130K to subdivide into 3.) This has been estimated to achieve $1.1-1.2m.
2: sell the units under one title and subdivide off the back section to sell separately.
3: sell the whole property as is. This has been appraised to return $750-800K (ouch).
The brightline won't apply, but we'd love to know which of the above scenarios would hit the sweetest spot. Thanks in advance for any thoughts/advice.
1: divide the units into separate unit titles and sell them separately, as well as subdividing off the back section and selling that separately. (We'd have to spend around $50K for fire wall report, building consent and fire wall upgrade between the units. Estimate is a cost of an additional $130K to subdivide into 3.) This has been estimated to achieve $1.1-1.2m.
2: sell the units under one title and subdivide off the back section to sell separately.
3: sell the whole property as is. This has been appraised to return $750-800K (ouch).
The brightline won't apply, but we'd love to know which of the above scenarios would hit the sweetest spot. Thanks in advance for any thoughts/advice.
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